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HB 1208

Revenue and taxation; income tax; rate; effective date.

2025 Regular Session Introduced by Cody Maynard

HB 1208 would ban foreign governments/entities from owning ND real property near state development and require divestment within 3 years, with limited exemptions.

Second Reading referred to Rules
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Bill Summary · HB 1208

Summary — HB 1208 (North Dakota, 69th Legislative Assembly)

Status: Withdrawn from further consideration (introduced Nov. 12, 2024)

Purpose

HB 1208 would have restricted ownership and certain development relationships in North Dakota between local governments and persons, entities, or governments identified as a “foreign country of concern” or a “foreign organization of concern.” The bill’s stated goal was to limit foreign-controlled ownership or development of real property—particularly in areas near military installations—and to provide mechanisms for reviewing and, where required, forcing divestment.

Key provisions

  • Create a new section in chapter 47‑02 N.D.C.C. addressing foreign ownership of real property near military installations (text not fully excerpted).
  • Amend and reenact:
    • Section 11‑11‑70 (county commissioners) and
    • Section 40‑05‑26 (city commissioners / city councils)
    • Prohibit a county or city board from procuring, authorizing, or approving development agreements, building plans, or proposals with individuals, governments, or entities identified as a foreign country of concern or foreign organization of concern (references 15 C.F.R. 7.4(a) and OFAC sanctions lists).
    • Include limited exceptions (see below).
    • Section 47‑01‑09 (title/ownership rules)
    • Prohibit specified foreign governments or foreign business entities from acquiring title to real property in North Dakota after July 31, 2023.
    • Require divestment by such foreign governments/entities within 36 months after August 1, 2023 (i.e., by Aug. 1, 2026) unless they meet specified exemptions.
    • Allow the state’s attorney to issue subpoenas and bring district court actions to enforce divestment; courts may order divestment and cancel recorded notices.

Exceptions / Eligibility to own

A foreign government or entity could be exempted if it:
- Is a duly registered business in good standing with the North Dakota Secretary of State for seven years or longer before Aug. 1, 2023;
- Has been approved by the Committee on Foreign Investment in the United States (CFIUS); and
- Maintains an active national security agreement with the federal government.

The attorney general was authorized to perform civil reviews (on request) to determine whether an acquiring foreign organization is qualified under the statute.

Enforcement & penalties

  • Enforcement mechanism is primarily civil: subpoenas, district court divestiture actions, and court orders to cancel recorded interests.
  • The bill text excerpted does not detail criminal penalties; it emphasizes civil remedies and mandatory divestment timelines.

Who would be affected

  • Foreign governments and business entities identified as a “country of concern” or “organization of concern” under federal listings or OFAC sanctions.
  • Local governments (county boards, city commissions/councils) — restrictions on entering development agreements with such entities.
  • Title agents, county recorders, and attorneys (requests for AG reviews, potential actions to clear titles).
  • Current foreign owners of Nebraska real property meeting the listed criteria would face divestment obligations unless they qualify for exemptions.

Timeline / procedural notes

  • Exemption reference date: August 1, 2023 (used to assess prior lawful operation / eligibility).
  • Mandatory divestment window in the bill: 36 months after August 1, 2023 (deadline ≈ Aug. 1, 2026).
  • Bill introduced Nov. 12, 2024; status recorded as withdrawn from further consideration (Jan. 20, 2025 in the tracking provided).

Potential impacts / considerations

  • Would increase due diligence for real estate transactions, title searches, and local development approvals involving foreign-linked parties.
  • Could require existing foreign holders of real property to divest unless they secure CFIUS approval and a national security agreement.
  • May raise procedural workload for the attorney general’s office, county/state prosecutors, and courts handling divestiture actions.

Note: The legislative file provided includes text excerpts and cross-references; this summary is limited to the North Dakota provisions shown. The bill was withdrawn and did not become law.

Compiled from official sources — confirm details with the bill’s official record.

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